Gunawan Steel Group
| Industry | Steel |
|---|---|
| Founded | 1989 |
| Defunct | 1998 |
Number of locations | Indonesia, Malaysia |
| Subsidiaries | Gunawan Dian Steel Pipe (GDSP) Gunawan Iron Steel (GIS) Gunawan Dianjaya Steel (GDS) |
The Gunawan Steel Group was an Indonesian steel group founded 1989, which owned several Steel works in Southeast Asia. The group's companies were taken over by the Indonesian Bank Restructuring Agency (Badan Penyehatan perbankan Nasional, BPPN) in 1998 following financial problems as a result of the 1997 Asian financial crisis.
As of 2012 the subsidiary Gunawan Dianjaya Steel remains in business, the plate mill of Gunawan Iron and Steel was acquired by Lion Group and operates as Lion Plant Mill Sdn Bhd,
History and description
The group consisted of three steel industry companies; Gunawan Dian Steel Pipe (GDSP) based in Surabaya, Indonesia; Gunawan Iron and Steel (GIS) based in Kuala Terengganu, Malaysia and Gunawan Dianjaya Steel (GDS) (Surabaya, Indonesia).[1]
GDSP produced electric resistance welded steel pipe and had a capacity of 300,000 tonnes per year (2008 figure). GDS had a production capacity of 400,000 tonnes of plate per year.[2][3]
GIS's steel plant was created in the late 1990s through the re-assembly of equipment acquired from steel works in Europe;[4] a $760 million development plan included equipment acquired from the closed Ravenscraig steelworks in Scotland,[5] Blast furnace capacity was acquired from Koninklijke Hoogovens by dismantling and shipping a disused blast furnace,[2] a LD-converter was acquired from Voest Alpine.[2][6] The company had a capacity of 250,000 tonnes of plate per year; the Terengganu state had a 30% stake in the company.[3]
After the 1997 Asian financial crisis the groups companies had debts of 1.45 trillion Indonesian rupiah and were taken over by the Indonesian Bank Restructuring Agency (Badan Penyehatan perbankan Nasional, BPPN). The assets of GIS and GDSP were later acquired by Bina Kreasi Primaniagatama at a much lower value than their capital worth.[1] In 2004 it was alleged that the sale of the groups steel companies was corrupt and had cost the (Indonesian) state 1.2 Trillion - it was claimed that the companies that reacquired the assets were part of the Gunawan group - a transaction that violated governmental asset sale regulations.[7]
The GIS plate mill became part of the Lion Group and production was restarted in 2003.[8]
Gunawan Dianjaya Steel (GDS) was owned by the Gunawan family in 2008,[3] and launched an IPO in 2009, raising $16.8million for 12.2% of the company.[9]
References
- ^ a b "Profile Gunawan group", Indonesian Commercial Newsletter, 1 June 2008
- ^ a b c Major Developments in Steelmaking Capacity in the Non-OECD Area, Organisation for Economic Co-operation and Development : Directorate for Science, Technology and Industry : Steel Committee, 14 October 1997, pp. 30, 31, 38
- ^ a b c Developments in Steelmaking Capacity of Non-OECD Economies 2008, OECD Publishing, 2009, pp. 226, 243
- ^ Rosll Zakaria (27 July 1998), "Gunawan Iron and Steel impresses Mitsubishi Tokyo", New Straits Times
- ^ Sources:
- "Gunawan Dianjaya setting up steel slab plant in Malaysia", Indonesian Commercial Newsletter, 22 November 1993
- Indonesia, news & views, Indonesia. Departemen Luar Negeri. Directorate for Information, April 1993, p. 5,
Privately-owned Indonesian steel maker PT Gunawan Dianjaya announced in March that it will buy a defunct steel plant in Scotland to be dismantled and reassembled in Malaysia
- Colin McSeveny (11 February 1993), "Indonesians are set to buy Ravenscraig", www.heraldscotland.com
- Alf Young (27 January 1994), "Ravenscraig export plan hits problems", www.heraldscotland.com
- Sid Astbury (1 February 1996), "Malaysia - Burying the Hatchet for Business", cargonewsasia.com
- ^ "The LD- Steel Production Process", www.geschichteclubstahl.at, retrieved 6 February 2012,
The LD plant Nr. 1, the first LD steel plant in the world, was shut down 1977, having operated successfully for 25 years. The complete equipment was sold in 1997 to Gunawan Iron and Steel Company in Malaysia
- ^ "Probe into corruption in steel mills sought", The Jakarta Post, 3 November 2004
- ^ "Lion Group restarts Gunawan plate mill", Metal Bulletin, 27 March 2003,
Malaysia's Lion Group has begun production of steel plate after restarting the former Gunawan Iron & Steel mill on the country's east coast. Lion Group is rolling 8-30mm thick plate at the mill in Kemaman, Tregganu state, after acquiring the facility last year from the receiver, PricewaterhouseCoopers. The mill is now operating as Lion Plant Mill Sdn Bhd, a wholly owned subsidiary of the Lion Group. The plate mill has a capacity of around 250,000 tpy..
- ^ Aditya Wikrama (23 December 2009), "Gunawan Dianjaya Steel Sinks During Debut Listing", www.thejakartaglobe.com